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April 2023: Indiana Legislature Passes Consumer Data Privacy Bill

27 Apr


Update Applicable to:
All businesses handling consumer information in the state of Indiana.

What happened?
On April 13, the Indiana legislature passed Senate Bill 5 (SB 5), which introduced the Consumer Data Protection Act (VCDPA).

What are the details?
Effective January 1, 2025, if the governor signs, Indiana residents will have the right to correct inaccuracies but only for personal data that they previously provided to the controller. The right does not extend to all personal data in a controller’s possession, such as in Colorado, Connecticut, and Virginia (Utah and Iowa lack this right entirely).

In addition, the bill’s right-to-access provision says that consumers have the right to obtain either a copy of their data or a “representative summary” of the consumer’s data the consumer previously provided to the controller. The choice is at the controller’s discretion.

As with the laws in Iowa, Utah, and Virginia, the Indiana bill does not require controllers to recognize universal opt-out mechanisms.

Consistent with the VCDPA, the bill defines “sale” as monetary consideration and not “other valuable consideration.”

Enforcement/Right to Cure
The bill contains a thirty-day right to cure violations, which does not sunset. During the committee hearing, a representative from the Indiana Attorney General’s office stated that the Office wanted the right to cure to sunset. Still, the amendment was never made to the bill. That leaves California, Colorado, and Connecticut as the three states where the right to cure has or will sunset.

Resources/Sample Notices
The Attorney General is permitted (but not required) to maintain on its website a list of resources for controllers, including sample privacy notices and disclosures, to assist controllers with compliance.

For more information, please see the links below:

Senate Bill 5 (SB 5)

Article 1Article 2

What do employers need to do? Employers should review the links above, monitor any news regarding this update, and make the necessary adjustments to their consumer privacy policies to follow the new law if the governor signs.

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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